I completely agree and we have built all of our marketing around keeping our promises. However the real estate community needs to step up too. We get calls on Sunday afternoons to pre-approve buyers about to make an offer - don't take the buyer out and show them property until they are thoroughly pre-approved. Allow the lender enough time to do the job correctly, speed kills in the mortgage industry and time is our enemy if an issue comes up in the mortgage file, so stop demanding immediate pre-approvals and fast closings. I believe that the credit risk folks and the regulators want the process to take a full credit cycle to insure that the borrower is true to their profile. Work with lenders who keep their promises, get your buyers to good lenders early and give everyone time to do their jobs.

I could go on for several hours regarding this topic. I will simplify it: The LO needs to take a very exhaustive mortgage application in the beginning and confirm and verify that all applicable documentation from the borrower is acceptable.

Interesting. That is a bit of a one sided observation. In my experience, I find that many Realtors tend to push the envelope to close in unrealistic time frames. They tend to be "surprised" when you tell them 30 days from app to close on, say, a USDA is likely not to happen. An appraisal can take 3 weeks in some instances. Not taking into account delays with sourcing funds, usda approvals, short sale banks needing the hud 2-4 days in advance of closing, etc are all issues needing to be kept in mind when estimating closing time frames. I think all parties, Realtors and LOs, are guilty of telling people what they want to hear. We all need to buck up....and tell it straight.

Agree with the comments. Its all too often I get contracts on Sunday night that were signed on Friday. I think it all depends on the Realtor you are working with. I think the other thing is you can't always predict the roadblocks on a file, but you do need to do a full pre-approval, including a DO approval, before writing the the pre-Approval letter unless you have worked with that borrower before and even then, credit and a long conversation is still required. The other toughie for us is lender performance. With the exception of a couple of lenders out there, the performance of wholesale lenders vary quite a bit. I always tell the borrowers and the Realtors "if everything goes perfect.....then we can close by this date". I also make a habit of explaining to them, in detail, what the roadblocks may be....thing is, when it comes down to it, many of them don't remember those conversations as I think they are elated to be in contract. Over communication is the only way to manage expectations in my experience. Good topic.

@Ron, the LO does not make the final determination of what is or is not acceptable. Just an FYI. It's the UW of the investor that does this. They each interpret the rules a little differently. In addition, borrowers don't always tell us everything just as they don't you.

Amy, excellent post. I completely agree. My partner is an Underwriter and I see what comes in as a submitted file. Now I know why Realtors are so frustrated. Realtors have to trust their paycheck with an LO and a processor.

I agree that rushed closing dates need to be addressed when the mortgage is going into process and get the extension asap. We also have to have an open dialog with Realtors about condition issues, we often don't find out about them until the appraisal takes forever. Is it "as is" or subject to completion? Repair conditions can add a month to a closing with repair, reinspection and reunderwriting.

When I think of the mess we have had with the mortgage meltdown their is enough blame to go around for everyone involved. I think if we all Realtors, Buyers, Sellers, Loan officers and underwriters just look at the facts "the truth and nothing but the truth" we would not have had this mess. Lets start with underwriters they have to deal with what information they have been sent so if a LO sends in false information the underwrighter is making a decsision on the credit of this mortgage based on what they have on front of them. The buyer should be aware of what they make and not just take a LO suggestion for how much house they can afford they blamed the Lo and said they told me I could afford it. Consumers need to be aware. Consumers also need to beware as their are LO and Realtors that let greed get in the way of putting together a good mortgage. I have been in the industry for over 15 years and I have worked for some of the big lenders WF, B of A and CW. I had a front row seat to LO officers that would cut and paste and send in false information just to get someone approved. some of those mortgage officers are no longer with the company but some of them just went to other agencies and are still doing mortgages. As far as setting expectations I have been the most frustrated with the Real estate agents as they want to get paid as soon as possible and so rather then put a good package together with realistic time frames they choose to be demanding and pushy and think that will get the mortgage to close faster. If the realtors set the stage for a realistic time line all parties involved could do their job better and have a positive outcome.

Bruce, The originator does not set a closing date the realtor, seller, and buyer determine the closing date. The originator does just that originates the mortgage. We meet with the customer and togehter should decide what program (FHA Conventional) at that point we ask for all the documentation we will need for underwrting. Many times it is a slow borrower that never gets the documentation you need that slows the process down. That is why a pre approval is a good idea. Keeping in mind a pre approval does not mean fully approved. The term just means that based on what the borrower told me he qualifies. If something like a lien on the property (refinance) shows up on title then we have to address that. The mortgage process goes smooth when wveryone is upfront and does their job and does not try to rush it. You are still at the mercy of the underwriters and how mych they want to tear apart what you send them. I fine a mortgage is like a puzzle and all the pieces have to fit and make sense or those littel red flags start to go up and then you really have problems so it is best to be honest and send a file that is what it really is. You can't get everyone approved that is reality.

2 often I will see an unrealistic contract come in, but then the originator is afraid to tell the agent and borrower it is unrealistic from day one - as many agents then take that opportunity to try to sway the borrower to use "their guy". So, yes, communication is extremely important but so is professional courtesy.

I am a Realtor who has been an appraiser and also originated mortgages, I now sell many foreclosure properties. Others in my office list the properties and I try to sell as many as I can. Many times, agents, and also LO's, have no idea as to requirements to make an offer. I worked on an offer and the buyer's LO stated that the buyer was pre-approved and yet the buyer hadn't signed any papers, no verif's had been verified, and his offer would not have been accepted. I forward unsigned contracts to the LO's and when I have negotiated an accepted offer, I forward ALL approved paperwork to the buyer's lender so they can plan accordingly. Usually, there is a per diem of $50 or $100 and negotiation includes closing dates requested by the seller. We also require that the mortgage originator order the appraisal within 15 days instead of waiting til the last minute in order to save the borrower money in case they don't qualify. We want to know the buyers qualify before we write an offer and the only change would be if the buyer lost his job, he died, or the appraisal didn't meet the offer price. If LO's that I am involved need info from the buyers, all they need to do is notify me and I'll act as go-between to get the job done - including delivering any paperwork. We are all in this together and none of us makes money unless we work together and quit blaming everyone else! I work with fantastic LO's and appreciate their help in my being able to take my checks to the bank! There are bad Realtors as there are bad LO's but I'll try my best to avoid the bad LO's and get the job done - including refusing to write an offer for a lady who wanted to use a bank that I had previously had problems. She found another Realtor to write the offer and she ended up having to change banks and pay a per diem! Hopefully both Realtors and LO's and educate each other and have more communication!

Oh brother. I have seen realtors showing $ 600,000 properties to people that only qualify for a $ 250,000 purchase. Then they write a contract and put a 30 day close. Realtors need to do a due dilligence before the take someone out to show them a home. I have also called realtors for information. Never received a call back until the day of closing . where they are asking where the docs are. I believe realtors need to be licensed and bonded just like mortgage originators. This would eliminate all the weekend realtors.

I also understand as like all other professions, there are great Realtors and lousy Realtors! We in Iowa (and also when I lived and was a Realtor in Arizona) are licensed and MUST carry E & O Insurance with definite minimum coverage. The problem is that it doesn't cover a lot of stupidity! Also, for those of us who care, it is easier to do it the right way than try to do as you told us about! I'd rather have a closing that is as easy as possible and the only way you can have an easy closing is to do the best we can, all the way through - from the first contact all the way through to the end!

Funny how realtors think they anything they say is worth listening to. I won't deal with them, I don't care how much POTENTIAL money they bring to the table. Most are part timers. They don't understand value/service. They are totally selfish and self serving. I'd like to buy them a nice cup of "shut the hell up."

I LOVE working with realtors and find many, many high level, successful and professional realtors to work with. There are a lot of bad ones, however their buyers still deserve to work with me... in any case, work with people who are like minded and you will build solid referral partnerships!